The government of Rwanda will July set up an affordable housing fund to help bring down the current cost of housing in the country.
The development comes following the Kigali City housing market survey conducted in 2012 which indicated that the housing unit is substantially expensive and hence un affordable.
It is against this background that the Ministry of Infrastructure held a conference at Kigali Marriot Hotel with Private Sector Federation and the Rwanda Housing Authority for their commitment in engaging in private investments in the housing sector
This housing fund will reduce most of the highlighted challenges including the high cost of developable land up to 40%of house cost.
Speaking to the media, story Rwanda’s Minister of Infrastructure James Musoni said; “that’s true, the prices of housing are high, and we have carried out assessments and decided to set up a housing fund.”
“The government will also buy developable land and give it to estate developers who will construct and then sell houses at a cheap price,” he added.
The Minister revealed that the government has also reduced income tax to companies and entities involved in housing, all interventions of which will substantially bring down the current housing costs and trigger increased access at affordable rates.
The initial investment the government plans to inject in the fund is around USD200 million which will grow over time.
Different housing projects have started emerging in the country like the 2700 housing in Nyarugenge District, a 2000 housing MOU between Moroccans and BRD were signed as the Rwanda social security board also is in construction of 561 housing units in Batsinda.